The last three years has seen significant structural reform in the music products and allied industries. Coming off the back of the out fall of a post stimulus GFC and the liquidation and eventual sale of the Australian Music Group, we are perhaps seeing the stabilisation of the supply of major brands. Combined with an uptick in consumer confidence and steady retail sales generally, the music products industry could be staging somewhat of a recovery.
A rise in Average Unit Value may suggest a decline in low value imports. After a period of deflation this would not be unwelcome. With the Aussie Dollar falling 14% in 2013, one could surmise a correlation.
Overall a steady recovery of single digit value growth in most categories could only be seen as positive.
The positive news here is that there has been some growth in value. An additional $10 million at import represents about $25 million at retail. Hopefully it represents the first on a number of re-building years following the GFC and more particularly the sale and break-up of the AMG Group, the significant reduction of sites for the country’s biggest chain and the closure of perhaps 20% of the country’s retailers over recent years.
The other good thing is the increase in Average Unit Values. In part this comes as a result of fewer low cost imports (other woodwind, other percussion, and to a lesser extend acoustic guitars and Electronic Keyboards) and in part from the exchange rate movement downwards against most major currencies.
Members of the AMA may access a full 2013 Market Report in the Members Only section of this website.